Analysis & Opinion

SYDNEY Dec 2 (Reuters) - Gold output in Australia, the
world's no. 2 producer after China, fell 7 percent in the third
quarter following operating problems at some of the county's
biggest mines, a survey released on Sunday showed.

Output was 62 tonnes in the three months ended
September 30, five tonnes down on the same period a year ago and
two tonnes below the preceding quarter, according the Gold
Quarterly Review by Melbourne-based Surbiton Associates.

"Many of the larger gold mines, mostly in Western
Australia, had technical issues which reduced their gold
output," said Surbiton Managing Director Sandra Close.

Gold production at Australia's biggest mine, Super
Pit, declined by 42,000 ounces , or 1.3 tonnes, due to lower
ore grades and processing, it said. The mine is a 50-50 joint
venture between Barrick Gold and Newmont Mining

"Super Pit's production for the quarter was down
substantially and the lowest in four and a half years," Close
said. "Lately, it has been producing at around 180,000 to
200,000 ounces a quarter."

Other mines owned by Newmont, Newcrest Mining and
St Barbara Mines also yielded less gold in the last
quarter, according to Close.